Tom Leswing of Ignites writes about exchange traded fund popularity in 2005, and we should be on the look out for more in 2006.  With anticipation of leveraged index funds, actively managed funds and more specialty products – international ETFs with no US stocks and additional sector funds – 2006 should be a great year for ETFs.

Chip Roame of Tiburon Strategic Advisors believes ETF "growth will result from the products’ getting a warm reception in a wide range of different types of investment accounts and distribution channels.  From wrap programs to IRAs to the retail market to the 401(k) market to separate accounts using them and hedge funds using them."

I think separate accounts will be a source of ETF growth.  At one time, separate account managers were resistant to use ETFs.  But the Street now has more respect for ETFs and for how you can use them, so we will see more separate account managers use them.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.